Plenty of people start Social Security and keep working, whether for the income, the routine or the company of coworkers. If you are younger than full retirement age, though, earning above a set limit causes Social Security to temporarily hold back some of your benefits. This rule is called the retirement earnings test.
The limits for 2026 and 2027
| Your situation | 2026 limit | 2027 limit | Amount withheld |
|---|---|---|---|
| Under full retirement age all year | $24,480 | $25,560 | $1 for every $2 above the limit |
| Year you reach full retirement age | $65,160 | $67,920 | $1 for every $3 above the limit |
| Full retirement age or older | No limit | No limit | Nothing withheld |
In the year you reach full retirement age, only earnings in the months before your birthday month count toward the higher limit.
An example
Suppose you are 64 in 2027, receiving $1,500 a month in Social Security, and you earn $35,560 from a job. That is $10,000 above the $25,560 limit. Social Security withholds $1 for every $2 over, or $5,000 for the year.
Social Security usually does this by holding back whole monthly checks at the start of the year until the full amount is withheld. In this example, you would not receive checks for January through April ($6,000, which covers the $5,000), and Social Security would pay the $1,000 difference later.
What counts as earnings
- Counts: wages from a job and net earnings from self-employment.
- Does not count: pensions, annuities, investment income, interest, capital gains, and other government benefits.
The special first-year rule
In the first year you retire, you may earn more than the annual limit and still receive a full benefit for any month you are considered retired. For 2027, that generally means a month in which you earn $2,130 or less and do not perform substantial services in self-employment. This helps people who retire mid-year after earning a full salary in the early months.
Withheld money is not lost
This is the part many people miss. When you reach full retirement age, Social Security recalculates your monthly benefit to give you credit for the months when benefits were withheld. Your monthly check goes up for the rest of your life. Over time, you generally get the withheld amount back.
Tell Social Security what you expect to earn
If you work while receiving benefits before full retirement age, give Social Security an estimate of your earnings for the year, and update it if your income changes. If too little is withheld, you may have to repay an overpayment later, which can be stressful. Reporting early avoids surprises.
You can report changes by phone at 1-800-772-1213, at a local office or, for some changes, online.
Is working and claiming early right for you?
If you plan to work full-time until full retirement age, starting benefits early often makes little sense, because much of the benefit may be withheld and your monthly amount is permanently reduced. Many people in that position choose to wait. Our guide to choosing when to claim walks through the trade-offs.
